Argentina has deported a former Nazi to Chile, where he is wanted on charges of sexually abusing children.

The move was announced two days after Chile's most wanted fugitive was arrested after eight years on the run.

Schaefer, 83, was a corporal in the German army during World War II before running a religious commune in Chile.

Colonia Dignidad, established in 1961, was cut off from the outside world and was alleged to have been a centre for torture and child abuse under Schaefer.

Schaefer was arrested on Thursday after a joint operation between Argentine and Chilean police.

He was taken to hospital on Friday complaining of high blood pressure, but health concerns did not affect the deportation order, passed under a new Argentinean law to avoid complex extradition procedures.